PUTRAJAYA: The prosecution in Datuk Seri Najib Tun Razak’s trial at the High Court today contended that the former prime minister used a phone call to pressure 1Malaysia Development Berhad (1MDB) into forming a joint venture with PetroSaudi International (PSI) in 2009.
The phone call was made by fugitive businessman Low Taek Jho or Jho Low to Najib, during which he asked if Najib would speak to former 1MDB board chairperson Tan Sri Mohd Bakke Salleh before a 1MDB special board meeting on Sept 26, 2009 to convey the general context of the purported Government-to-Government initiative between Malaysia and Saudi Arabia.
Najib however denied the contention and said he did not influenced Mohd Bakke’s mind and the phone call only indicated that the proposed joint venture was a strategic initiative between Malaysia and Saudi Arabia and at the same time will strengthen bilateral relation between the two countries.
“The board members were not influenced by my phone call, Tan Sri Mohd Bakke chaired the meeting and the other board members did not know about the telephone call.
“The telephone call did not influence the decision of the board to enter the joint venture,” Najib said during cross-examination by deputy public prosecutor Ahmad Akram Gharib.
Referring to Najib’s witness statement, Ahmad Akram stated that Najib, as the sole shareholder of 1MDB through the Ministry of Finance Incorporated was aware that 1MDB had approximately RM4.3 billion raised from Islamic Medium Term Notes (IMTN) bonds to be utilised.
To this suggestion, Najib said “I was not concern about the expenditure. I am only concern about the partnership, it (RM4.3 billion) was not in my mind when I spoke to Tan Sri Mohd Bakke”.
Ahmad Akram: Datuk Seri, do you agree with my suggestion that Datuk Seri was asked by Jho Low to speak on the phone regarding the use of the RM4.3 billion. This is a large amount, Datuk Seri, there should have been more action from Datuk Seri (apart from just speaking on the phone to Tan Sri Mohd Bakke).
Najib: 1MDB board of directors are professionals, I have no doubt the call would lead to anything that will be detrimental to 1MDB or the country’s interest. That’s why I wanted them to consider it but normal process of due diligence must be carried out.
In his witness statement, Najib said that Jho Low was invited by 1MDB management to present PSI’s perspective, including its strategic benefits, financial projections and the broader diplomatic context of the bilateral collaboration as Prince Turki (son of the late Saudi ruler King Abdullah) who was originally scheduled to present could not attend the meeting.
Ahmad Akram reiterated that Najib knew 1MDB had RM4.3 billion to be utilised and that Jho Low, who held no position in 1MDB was set to make a proposal, yet Najib encouraged him to present it for the 1MDB board of directors to consider carefully.
To this suggestion, Najib said he only wanted Jho Low to make an informed decision and make sure that the joint venture would be a success.
Ahmad Akram: If that is the situation, why did you assume a lot of things (in your witness statement). You assume Jho Low would be telling them (the board), you assume Jho Low is going to make an informed decision, you assume a lot of things Datuk Seri. When Jho Low said one thing and you straight away believe him?
Najib: No I want Jho Low to present to the board, in fact my preference would be Prince Turki, he should be there.
Ahmad Akram: Even worst, Jho Low is a third person, a third party. Just by saying he is representing King Abdullah’s interests, then Datuk Seri said ‘pergi lah’ (go) present to the board’.
Najib: I didn’t say ‘pergi lah’, the board invited him to be there. I am only concerned about the big picture because I believe PSI is owned by Prince Turki and his family. That was my believe.
On Oct 30 last year, Judge Datuk Collin Lawrence Sequerah ordered Najib to enter his defence, after ruling that the prosecution had successfully established a prima facie case against him.
Najib faces 25 charges, including four counts of using his position to receive RM2.3 billion in 1MDB funds as bribes and 21 charges of money laundering involving the same amount.
The trial continues tomorrow.
